In an attempt to forestall competition and have an impressive market share in smaller towns and villages, Nestlé India Ltd’s noodle brand Maggi is making a big comeback at the ₹10 price point.
Price points such as Rs 5 and Rs 10 work because they appear attractive for low-priced consumer items such as foods and shampoos. Maggi masala noodles are also available at Rs 7 (32gm) and Rs 14 (70gm).
Nestle which used to sell Maggi in 100g packs for Rs 10, raised the price to Rs 12 in December 2014 and then to Rs 14 in February last year because of rising raw material costs.
The new Rs 10 pack, introduced in Rurban markets (rural markets and small towns) across 15 states, weighs 40gm. However, Rs 10 packs are still available in a few markets of Punjab and Uttarakhand, mostly catering to tourist joints.
“There is an increasing preference for spicy products all across India. Maggi has always been in tune with what our consumers desire and has started offering a range of products to consumers that meet this need. We already have Maggi special masala, Maggi spicy garlic and Maggi manchurian noodles in urban markets. For rurban markets, we recently launched “Teekha Masala” and “Chatpata Masala” variants of Maggi noodles for Rs 10,” said Nestle India.
As per analysts, Nestle India resuming business into the Rs 10 stock-keeping units (SKU) is seen positively by channel partners. Nestlé India Ltd chairman and managing director Suresh Narayanan said, “Every competitor keeps me positively awake. There are some Indian brands that are doing well. The problem happens when brands look at it as an opportunistic play—which is, get in there, give something slightly inferior at a better price, and then walk away. That dents the category badly.”
Maggi noodles are part of the company’s prepared dishes and cooking aids portfolio. In 2022, the portfolio contributed 32.2 percent to the company’s domestic sales, as per the revelation by the company’s annual report. Maggi has 60 percent market share in the packaged noodles market in the country.